2009-07-31

By Editor, CIR

The Forum of Private Business (FPB) has reacted furiously to the announcement that a Workplace Parking Levy (WPL) would be introduced in Nottingham.

The WPL scheme, officially launched today by Transport Minister Sadiq Khan, could soon see small firms being charged up to GBP350 for every parking space they provide for their staff.

The scheme, which is expected to net Nottingham City Council GBP11.3 million a year, is not due to come into effect until 2012. However, the FPB is concerned that this announcement will set a dangerous precedent and encourage other local authorities to introduce the tax in their areas.

Far from promoting the use of public transport and reducing pollution as the government claims, the FPB believes the WPL will simply lead to businesses either paying the tax -- thereby lining the pockets of their local authority -- or axing their parking provisions.

This, the FPB believes, will lead to workers parking on streets and in residential areas, causing congestion and conflict with residents.

The FPB is also arguing that the economies of Nottingham and other towns and cities which introduce WPL schemes will suffer. They will effectively become uncompetitive and see an exodus of employment from their areas as businesses move elsewhere.

Another concern is that shift workers and those outside town and city centres, who cannot use buses and trains, will be particularly badly affected.

FPB chief executive Phil Orford said: "While we try not to use such terms lightly, we believe that the introduction of the WPL scheme is scandalous and is little more than a stealth tax.

"It's the business equivalent to introducing a driveway tax to charge people for parking outside their own homes. This announcement could not come at a worse time for smaller businesses, who are struggling with rising costs on almost every front and trying their best to make it through the recession."

Mr Orford added: "I would urge the government, in the strongest possible terms, to shelve this scheme. If it wants to reduce congestion and pollution, it should concentrate on improving the quality and affordability of public transport, not penalising employers for taking cars off Britain's crowded streets."

The FPB voiced its opposition to the WPL scheme in March during the consultation phase of the plans. In response to the consultation, the FPB said it was 'extremely concerned' over the impact the proposals would have on smaller businesses.

The FPB argued that smaller firms would be disproportionately burdened by the tax, which will impose a flat rate on all businesses with 11 or more parking spaces.

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